2024-04-26-港交所-沈阳公用发展股份_2023年度报告_230页_5mb

SHENYANG PUBLIC UTILITY HOLDINGS COMPANY LIMITED 2023 ANNUAL REPORT SUMMARY

Core Content Overview

The 2023 Annual Report of Shenyang Public Utility Holdings Company Limited provides a comprehensive overview of the Group's financial performance, business operations, and strategic direction. The report highlights the challenges faced in the real estate and infrastructure construction sectors, as well as the Group's response to these challenges through strategic adjustments and diversification efforts.

Key Financial Performance

• Revenue for 2023: RMB1,498,000 (2022: RMB29,427,000), representing a decrease of 94.91%.
• Loss before tax for 2023: RMB146,593,000 (2022: RMB75,824,000).
• Basic loss per share for 2023: RMB9.33 cents (2022: RMB5.00 cents), an increase of 86.6%.
• Income tax expenses for 2023: RMB37,000, up 100% from 2022.

Main Business Activities

Infrastructure Construction

• Zhongfang Chaozhou Jing Nan Industrial Park Project:
  • The settlement process is ongoing due to disputes over construction costs and labor/material pricing.
  • No revenue was recorded in 2023 from this business.
  • The Group is working with third-party agencies and local government to resolve discrepancies and ensure smooth project completion.

Property Development

• Shennongjia Hotel:
  • A non-wholly owned subsidiary, located in Hubei Province.
  • Holds land use rights for approximately 35,506 sq.m. for commercial hotel use.
  • Construction is ongoing, expected to be completed in 2024, with renovation to follow.
  • The Group has made an impairment provision of RMB16,470,000 due to construction delays and cost overruns.

Property Investment Business

• The Group's property investment business is concentrated in Guangzhou, Beijing, and Sanhe.
• It owns:
  • 125 offices in the Fangshan Project.
  • 11 shop units and 60 parking spaces in Sanhe.
  • 1 shop unit in Guangzhou.
  • 1 commercial property in Shunyi, Beijing, which is completed.
• Rental income for 2023: RMB1,498,000 (2022: RMB1,468,000), an increase of 2.04%.
• The Group plans to lease out part of the Fangshan Project and sell the rest when the market is favorable.

New Business Development

• The Group has secured the rental rights for a 3,000 sq.m. vacant land in Shenzhen's Shenyun Cultural and Sports Park for an entertainment project (indoor skiing, indoor surfing, children's entertainment).
• The venue is currently under renovation, with planned operation in mid-2024.
• The Group also plans to launch an alcohol sales business in 2024, mainly selling high-end white wine in the Shenzhen area.
• Hotel and catering business development is planned in Dongchong, Shenzhen, with cooperation intentions already reached.

Financial Position and Liquidity

• Total assets as of 31 December 2023: RMB632,689,000 (2022: RMB748,981,000), a decrease of 15.53%.
• Non-current assets: RMB344,283,000 (2022: RMB395,292,000).
• Current assets: RMB288,406,000 (2022: RMB353,689,000).
• Net current assets: RMB79,002,000 (2022: RMB178,344,000).
• Cash and cash equivalents: RMB3,741,000 (2022: RMB6,557,000).
• Other borrowings: RMB7,215,000 (2022: RMB5,415,000).
• Current ratio: 1.38 (2022: 2.02).
• Gearing ratio: 0.33 (2022: 0.23).

Corporate Governance and Committees

• Directors:

  • Executive Directors: 張敬明 (Chairman), 黄春鋒 (CEO), 冷小榮.
  • Non-executive Directors: 周霆欣, 尹宗臣 (retired on 30 January 2024).
  • Independent Non-executive Directors: 羅卓強, 蒋海玲 (appointed on 30 January 2024), 毛海濬 (appointed on 30 January 2024), 郭鲁晋 (retired on 30 January 2024), 高紅紅 (retired on 30 January 2024).

• Committees:

  • Audit Committee: 羅卓強 (Chairman), 周霆欣 (appointed on 30 January 2024), 蒋海玲 (appointed on 30 January 2024), 尹宗臣 (retired on 30 January 2024), 高紅紅 (retired on 30 January 2024).
  • Remuneration Committee: 毛海濬 (Chairman), 羅卓強, 郭鲁晋 (retired on 30 January 2024).
  • Nomination Committee: 張敬明 (Chairman), 毛海濬 (appointed on 30 January 2024), 蒋海玲 (appointed on 30 January 2024), 郭鲁晋 (retired on 30 January 2024), 高紅紅 (retired on 30 January 2024).

• Supervisors: 王興業 (Chairman), 方偉然, 陳 斌 (appointed on 30 January 2024), 陳俊峰 (retired on 30 January 2024), 張運峰 (retired on 30 January 2024).

• Joint Company Secretaries: 鐘文偉, 钱芳芳.

• Authorised Representatives: 張敬明, 鐘文偉.

• Auditor: 华融（香港）会计师事务所有限公司.

• H Share Registrar and Transfer Office: 香港证券登记有限公司.

• Principal Bankers: 招商銀行, 中國銀行, 中國工商銀行.

• Stock Code: 747.

• Website: www.shenyang747.com.

Business Prospects and Strategy

• The Group anticipates government support and economic recovery will gradually improve the real estate market.
• It remains committed to steady development and is actively seeking new investment and development opportunities.
• The Group is focusing on diversifying its operations by exploring different business formats, including commercial properties, sports and cultural venues, and hotel and catering services.
• The Board is also looking to expand into new sectors and enhance market competitiveness.

Key Projects and Acquisitions

• Beijing Property:

  • Acquired in 2016 for RMB152,800,000.
  • Originally scheduled for completion in 2019, but delayed due to government requests, major events, and the impact of the pandemic.
  • Latest completion date is 31 December 2022, with ongoing delays.

• Impairment on Beijing Property:

  • An impairment loss of RMB11,802,000 was recognized for the deposit paid for the acquisition.
  • The Group has also reversed impairment losses on deposits and other receivables under the ECL model.

Conclusion

The Group faced significant challenges in 2023 due to economic instability, weak real estate market performance, and project delays. Despite these issues, it has continued to explore new business opportunities and diversify its operations to reduce risks and enhance profitability. The Group remains committed to its long-term strategic goals and is working towards stabilizing its financial position and achieving sustainable growth.